Aerospace Suppliers Emerge as Alternatives Amid Honeywell's Woes

Supply chain problems at Honeywell Aerospace have led to a sharp decline in its share price and a reduced sales growth outlook. This has put a spotlight on other companies that can deliver parts on time, making TransDigm Group, General Electric (GE), and RTX Corporation stand out.

TransDigm Group is an aerospace supplier that designs and produces highly specialized components for aircraft engines, airframes, and cabins. The company generates most of its revenue from Power & Control and Airframe segments, with a smaller Non-Aviation segment. TransDigm has a solid sales and earnings record alongside raised outlooks and acquisition deals.

However, the company faces concerns over high leverage, negative equity, right to repair pressure, and an expensive P/E ratio. If Honeywell continues to struggle with backlogs, TransDigm could see more repair and replacement work shift its way.

General Electric (GE), now doing business as GE Aerospace, designs and builds jet engines, avionics, power systems, and critical components for both commercial airliners and military aircraft. The company has a large backlog of US$210 billion and strong spare parts demand. However, it is still wrestling with its own capacity limits and spare parts delinquencies.

RTX Corporation is another large aerospace and defense supplier that provides engines, avionics, sensors, missiles, and other systems for commercial airlines and government customers. RTX sits on a record US$289 billion backlog and has raised its sales, EPS, and free cash flow guidance for 2026.